Federal prosecutors today foreclosed on a $9 million mortgage scam, busting a dozen brokers, loan officers and attorneys who used fake identities and false documents to buy a string of properties in New York and Long Island.

Using fake drivers licenses, bogus bank statements and made-up employment records, the alleged crooks convinced lenders to finance homes throughout the city and suburbs, including properties in Jamaica, Hollis, Roosevelt and Valley Stream.

A seven-count indictment said one lawyer used mortgage loan proceeds to pay his partners, and hid the payouts from lenders by preparing false mortgage documents. Most of the loans, meanwhile, are now in default.

“The U.S. economy is still reeling from the damage done by mortgage fraud schemes like the one unraveled today,” said Preet Bharara, US Attorney for New York’s Southern District. He said “our financial system depends” on uncovering this type of fraud.

When the bottom fell out of the nation’s economy, experts pointed the finger at lax lending practices that paired homeowners with homes they could not afford.

Blamed, too, were thieves who cashed in on the easy money and left homeowners and taxpayers holding the bag.

Officials said there were corrupt participants at each step of the mortgage process:

– A Jackson Heights man, Sakat Hossain, 43, used several identities to pose as a homebuyer in a number of different transactions in exchange for a piece of the proceeds, officials said.

– An Astoria man, Mikael Huq, 34, created false IDs for fake homebuyers to use at closings, according to prosecutors.

“This is exactly the type of criminal activity that was caused by – and contributed to – the terrible mortgage crisis facing our nation,” said New York Attorney General Andrew Cuomo, whose office worked with the US Attorney and the FBI among others.

“These defendants were allegedly able to obtain millions of dollars in home loans for phantom buyers precisely because obtaining these loans was far too easy at the time.”